Thursday, June 18, 2015


1.Securities and Exchange Board of India (SEBI)

The Securities and Exchange Board of India (SEBI) is the regulator for securities market in India. It was established on 12th April 1992 through the SEBI Act, 1992. SEBI has to be responsive to the needs of three groups, which constitute the market: the issuers of securities; the investors; the market intermediaries.
Powers: For the discharge of its functions efficiently, SEBI has been vested with the following powers:
  1. To approve by-laws of stock exchanges
  2. To require the stock exchanges to amend their by-laws.
  3. Inspect the books of accounts and call for periodical returns from recognized stock exchanges.
  4. Inspect the books of accounts of financial intermediaries.
  5. Compel certain companies to list their shares in one or more stock exchanges.
  6. Levy fees and other charges on the intermediaries for performing its functions.
  7. Grant license to any person for the purpose of dealing in certain areas.
  8. Delegate powers exercisable by it.
  9. Prosecute and judge directly the violation of certain provisions of the companies Act.
  10. Power to impose monetary penalties.

An Appraisal: Successful cases of grievance redressal by SEBI have been rising rapidly. However, a survey shows that most of the investors find the redresser ineffective. Moreover, SEBI is not able to do much about ‘fly by night’ or ‘sign-board’ companies who vanish after collecting huge money. SEBI has been too busy in framing rules and regulation giving rise to complex and cumbersome framework, which leaves scope for discretionary interpretation. It failed to punish those who caused abnormal fluctuations in the market. Due to this, small investors are losing confidence in investing. The autonomy of SEBI has been compromised as it, more or less, functions as a branch of the Union Finance Ministry.

2.Insurance Regulatory and Development Authority (IRDA)
Insurance Regulatory and Development Authority (IRDA) is an autonomous apex statutory body, which regulates and develops the insurance industry in India. It was constituted by Insurance Regulatory and Development Authority Act, 1999.
Powers and functions:
  1. Issue to the applicant a certificate of registration and suspend or cancel such registration;
  2. Protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance;
  3. Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents;
  4. Promoting efficiency in the conduct of insurance business;
  5. Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business;
  6. Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee;
  7. Regulating investment of funds by insurance companies;
  8. Adjudication of disputes between insurers and intermediaries or insurance intermediaries.

3.Competition Commission of India (CCI)
Competition Commission of India is a body of the Government of India responsible for enforcing the Competition Act, 2002 throughout India and to prevent activities that have an adverse effect on competition in India. The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, follows the philosophy of modern competition laws. The Act prohibits anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and Merger and acquisition), which causes or are likely to cause an appreciable adverse effect on competition within India.
Function and Responsibilities:
  1. Make the markets work for the benefit and welfare of consumers.
  2. Ensure fair and healthy competition in economic activities in the country for faster and inclusive growth and development of economy.
  3. Implement competition policies with an aim to effectuate the most efficient utilization of economic resources.
  4. Develop and nurture effective relations and interactions with sectoral regulators to ensure smooth alignment of sectoral regulatory laws in tandem with the competition law.
  5. Effectively carry out competition advocacy and spread the information on benefits of competition among all stakeholders to establish and nurture competition culture in Indian economy.

4.Telecom Regulatory Authority of India (TRAI)
The Telecom Regulatory Authority of India (TRAI) is the independent regulator of the telecommunications business in India.
Powers and Functions:
  1. Recommend the need and timing for introduction of new service provider;
  2. Recommend the terms and conditions of licence to a service provider;
  3. Ensure technical compatibility and effective inter-connection between different service providers;
  4. Ensure compliance of terms and conditions of licence;
  5. Facilitate competition and promote efficiency in the operation of telecommunication services so as to facilitate growth in such services;
  6. Protect the interest of the consumers of telecommunication service;
  7. Inspect the equipment used in the network and recommend the type of equipment to be used by the service providers;
  8. Settle disputes between service providers.

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